PayPal has taken a significant step toward becoming a bank in the United States. The company has submitted applications to both the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish PayPal Bank, a Utah-chartered industrial loan company.
This move aims to strengthen PayPal’s operations and increase efficiency, allowing the company to better support small business growth and economic opportunities across the country. Beyond providing small business loans, PayPal Bank plans to offer customers interest-bearing savings accounts and become a member of US card networks, complementing its existing banking partnerships for payment processing and settlement activities.
Since 2013, PayPal has facilitated over $30 billion in loans and working capital for more than 420,000 business accounts worldwide. By establishing its own bank, PayPal intends to deliver business lending solutions more efficiently to US small businesses, reduce dependence on third parties, and strengthen its core business.
If approved, deposits held at PayPal Bank would be eligible for FDIC insurance, providing customers with added security.
